Practica Capital Management UAB (Practica Capital) believes that strong corporate governance is essential to the financial success of its portfolio companies. The firm is committed to fostering sustainable practices across its organization, funds, and portfolio companies. It encourages both current and future portfolio companies to integrate ESG principles and align their ESG strategies with the United Nations Sustainable Development Goals. As part of this commitment, Practica Capital ensures transparency regarding its approach to sustainability-related matters.
The following sections provide information in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (the Regulation), as well as Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing the Regulation.
SUSTAINABILITY RISKS CONSIDERATION
Pursuant to Article 3(1) of the Regulation, Practica Capital declares that it does not integrate sustainability risks in its investment decision-making process.
Investment strategy of Practica Capital is focused exclusively on early-stage technology-driven businesses which do not inherently present material sustainability risks. Target companies are typically small-scaled, their activities are often based on provision of digital services and software solutions. Target companies also tend to stand out because of their core alignment with innovation and progress (especially, health-tech, ed-tech types of companies).
CONSIDERATION OF ADVERSE IMPACTS OF INVESTMENT DECISIONS ON SUSTAINABILITY FACTORS
Principle adverse impact is understood as any impact of investment decisions that results in a negative effect on sustainability factors, such as environmental, social, employee matters, respect for human rights, anti-corruption and anti-bribery matters.
Pursuant to Article 4(1)(b) of the Regulation, Practica Capital declares that it does not consider such adverse impacts and does not intend to consider them in the future.
Investment strategy of Practica Capital is focused exclusively on early-stage technology-driven businesses. Target companies are typically small-scaled and, therefore, exhibit low direct impact on sustainability (especially, environmentally-wise). Due to the same reason they do not produce sufficient data to enable meaningful insights or reliable measurement of such impact. On top of that, activities of these firms are often based on provision of digital services and software solutions, which are, again, intrinsically linked to low footprint. Lastly, target companies tend to stand out precisely because of their core alignment with innovation and progress (for instance, health-tech, ed-tech types of entities).
Practica Capital is committed to responsible investment practices and offers thorough guidance to its portfolio companies so that high standards of corporate governance, transparency and compliance would be instilled from the earliest stages of their businesses. Additionally, Practica Capital tracks the progress of its portfolio companies through an annual ESG questionnaire and reporting process and engages with them in case any improvements are needed.
INTEGRATION OF SUSTAINABILITY RISKS IN REMUNERATION POLICIES
Pursuant to Article 5(1) of the Regulation, Practica Capital declares that it does not integrate sustainability risks in its remuneration policies.
In the event of any changes related to the above, Practica Capital undertakes to review this notice and timely publish updated information.
This notice is relevant as of 3 July 2025.
